Mobile Virtual Network Operator Market Size, Share & Trends Analysis Report By Type (Business, Discount, M2M), By Operational Model, By End-use (Consumer, Enterprise), By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global mobile virtual network operator market size was valued at USD 76,015.4 million in 2022 and is estimated  to expand at a CAGR of 7.7% from 2023 to 2030. The growing adoption of data and value-added services such as M-commerce-based and live streaming services are expected to propel the market growth during the forecast period. The increasing smartphone penetration worldwide and subsequent rise in mobile subscriber base are estimated to remarkably contribute to the industry growth. Mobile virtual network operators cater to various customer needs; however, they do not own the full infrastructure or license for using radio frequencies.

The presence of a large number of market players has led to increased competition among service providers. Consecutively, this has led the players to offer mobile services at cheaper rates. The emergence of groundbreaking services such as machine-to-machine transactions and mobile money is expected to impel the market growth. Furthermore, MVNOs are collaborating with smartphone manufacturers to offer their services at cheap prices to attract a new customer base, which is instrumental in driving the market growth during  the forecast period.

Technological advancements such as cloud and M2M are expected to propel the market demand during  the next eight years. MVNOs are expected to provide cheaper and more convenient mobility options for different sectors, such as entertainment, lifestyle, and productivity, to increase revenue generation. MVNO also provides various features to their customers by offering roaming services while traveling or for tourists. For instance, Lyca mobile offers cheap international calling rates to their users.

Factors such as increase in network speed and the growing use of advanced devices have led to a high growth in the use of data applications such as video streaming and internet browsing. Significant investments to improve Mobile Broadband (MBB) connections and network coverage benefits offered by the MVNO model also include time efficiency and cost-effectiveness. In addition, low-cost data and voice services offered by the model is expected to lure more consumers, which, in turn, is expected to accelerate its growth. MVNOs also provide potential opportunities to MNOs in the market by improving network utilization, thus facilitating them in developing their own MVNOs.

Mobile Network Operators (MNOs) are making substantial investments in upgrading and maintaining their existing infrastructure. However, this has resulted in high operational costs and declining average revenue per user for MNO. Moreover, the lack of operational expertise is expected to restrict the market growth. Fragmented and lower spectrum holding by MNOs may impact service quality and could make entry of MVNOs in certain regions unviable.

Type Insights

Based on type, the market is segmented into M2M, business, discount, roaming, media, migrant, retail, and telecom. The discount segment accounted for a market share of around 24.0% in 2022. The MVNO market is expected to witness significant growth in the M2M segment owing to the rising adoption of cellular connectivity in machines starting from vehicles to vending machines.

Advancements in technology in the 3G M2M segments, initiatives by MNOs to expand their service portfolio, and the extension of mobile network coverage are the main factors supporting the growth of MVNOs in the M2M market. There has been a significant growth in the number of MNOs collaborating with M2M application service providers, which is anticipated to fuel demand for the mobile network element deployment in M2M applications during  the forecast period.

MNOs offer various service plans and products for different markets with fewer users, leading to expensive and inefficient operational and business support systems. The cost associated with retaining and acquiring new customers is relatively high, mainly for fixed-term contracts. The MVNOs can help overcome cost issues, optimize resource allocation, and improve the Quality of Service (QoS) that would contribute to the market's growth. Moreover, low-cost access to voice and data services is expected to be the key interest for customers.

Operational Model Insights

Based on the operational model, the market is segmented into full MVNO, reseller MVNO, and services operator MVNO. The full MVNO segment accounted for a market share of around 60.0% in 2022.The full MVNO segment led the market in terms of revenue in 2022. Implementing a full MVNO network infrastructure involves minimal capital investment and provides complete call control, allowing customers to call internationally at highly discounted rates. The emergence of MVNOs is the result of regulatory interventions to lower the barriers for entry and eventually increase competition and strategic decisions undertaken by MNOs.

MNOs have their own mobile licenses, infrastructure, and customer relationships with their end-users and are capable of handling network routing. They generally have roaming deals with foreign counterparts. However, in an attempt to expand their existing customer base and operations, MNOs are collaborating with MVNOs and targeting niche segments.

To avoid direct competition with MNOs, MVNOs are focusing on offering differentiated services. They are aiming at capitalizing opportunities related to roaming services by providing special services to tourists and youth. MVNOs aid in increasing revenue for MNOs by providing wholesale deals, increasing network utilization, and creating their MVNO’s by launching sub-brands.

End-use Insights

Based on end-use, the mobile virtual network operator (MVNO) market is segmented into consumer and enterprise. The consumer segment accounted for a market share of around 77.0% in 2022. The consumer segment dominated the market in 2019 and is expected to maintain its dominance during  the forecast period. Increasing network speed and use of advanced devices enable growth of data applications such as internet browsing and video streaming.

Increasing investments are made to improve network coverage and growth in mobile broadband (MBB) connections. The MVNO model offers benefits such as time efficiency and cost-effectiveness, which is expected to lure more consumers, in turn, accelerating the growth of consumer segment.

Managing connected living, personal data, and rising e-commerce activities is also anticipated to provide significant growth opportunities for key players operating in the market along with increasing consumer benefits. Intelligent networks connecting a wide range of devices enable increased productivity of enterprises. The partnership between MNOs and MVNOs majorly depends on brand reputation, distribution network, promotional strategies, and access to segments. The MVNO model is shifting from voice to a more data-centric experience. MVNOs across the globe are looking for data-capable smartphones as a way to expand their businesses.

Regional Insights

Europe dominated the market in 2022. Europe accounted for a market share of 47.39% in 2022. The growth can be attributed to the favorable regulatory framework, which is expected to play a crucial role in developing the MVNO. Countries such as the U.K., Germany, and the Netherlands are likely  to impact regional growth in a positive manner during  the forecast period. Data services are expected to be the key services for regional growth during  the forecast period.

Asia Pacific and MEA are estimated to experience significant growth during  the forecast period. The growth in this region can be attributed to the phenomenal expansion of the telecom services industry in this region. Emerging economies in the region, such as India, Vietnam, Myanmar, and China are making efforts in the expansion and modernization of their telecommunication services. Southeast Asian countries such as Thailand, Singapore, and Philippines are also estimated to contribute substantially to the regional market expansion during  the forecast period.

Countries with advanced cellular networks, such as Malaysia, Japan, and Australia, are expected to play a major role in expanding the Asia Pacific regional market. For instance, in Japan, MVNOs provide services such as online gaming, remote management of vending machines, M2M, and surveillance, among others. In the healthcare sector, they also offer voice-controlled services for the patient monitoring and security applications.

Key Companies & Market Share Insights

Geographic expansion remains the key focus of all the players operating in the market. For instance, Virgin Mobile is present in various countries, such as the U.S., Mexico, the U.K., Canada, Australia, Poland, France, and Saudi Arabia. It provides a wide range of services such as TV-on-demand, digital cable recorders, cable, broadband, television,  mobile and converged solutions.

Industry players are also adopting various strategic initiatives such as partnerships, mergers & acquisitions, collaborating with other firms to gain a competitive edge and deploying better services to their customers. For instance, in June 2021, Lebara Group extended its MVNO partnership with Vodafone to continue to host network for the U.K. businesses. This alliance will allow the former company’s customers to access Vodafone’s 5G services. Some of the prominent players in global mobile virtual network operator market include:

• Talk Talk Group

• Giffgaff

• Lebara Group

• Lyca Mobile

• TracFone Wireless Inc.

• Poste Mobile SpA

• Virgin Mobile

Mobile Virtual Network Operator Market Report Scope

Global Mobile Virtual Network Operator  Market Segmentation

This report forecasts revenue and subscriber growth at the global, regional, and country levels in addition to provides an analysis of the industry trends from 2018 - 2030. For this study, Grand View Research has segmented the global mobile virtual network operator market report based on the type, operational model, end-use, and regions:

• Type Outlook (Revenue, USD Million; 2018 - 2030)

  • Business

  • Discount

  • M2M

  • Media

  • Migrant

  • Retail

  • Roaming

  • Telecom

• Operational Model Outlook (Revenue, USD Million; 2018 - 2030)

  • Full MVNO

  • Reseller MVNO

  • Service Operator MVNO

• End-use Outlook (Revenue, USD Million; 2018 - 2030)

  • Consumer

  • Enterprise

• Regional Outlook (Revenue, USD Million; Volume, Million Subscribers; 2018 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • France

    • Germany

    • Italy

    • Netherlands

    • Spain

    • UK

  • Asia Pacific

    • Australia

    • Hong Kong

    • Japan

    • Malaysia

    • Singapore

    • Thailand

    • Vietnam

    • Philippines

    • South Korea

  • Latin America

    • Brazil

    • Colombia

    • Mexico

    • Chile

    • Peru

  • MEA

    • Middle East

    • Africa